ARUA —Representatives from MTN Uganda and SBG Securities plus Crested Capital (stockbrokers of the MTN IPO), have arrived in Arua for a town hall meeting to drive awareness and provide vital information about the MTN offer of shares and the stock market to communities in the area. This is in an effort to arm the public with requisite information about MTN and to enable them to participate in the ongoing IPO.
An IPO is the process of offering shares of a private corporation to the public for the first time.
The Arua MTN IPO town hall session is part of a nationwide awareness tour which feeds into MTN’s broader “Uganda is Home” campaign through which the telecom is seeking to further deepen its roots across the country by offering Ugandans ownership in one of the country’s largest companies.
MTN and the brokers will hold over 300 meetings across all the districts countrywide to sensitize the public about the opportunity to own shares in the company.
Similar engagements have been held in Jinja, Mityana, Lyantonde, Apac, Lugazi and Mukono, Mbarara, Gulu, Masaka and Hoima among others.
The initiative to take the IPO closer to the people follows MTN’s announcement of the intention to list 20% (4.5 billion shares) of its ordinary shares and the subsequent opening of the offer on Monday 11 October 2021, after approvals by the Capital Markets Authority of Uganda. The offer will close on Monday 22 November 2021.
MTN is offering shares at UGX200 per share with a minimum order quantity of 500 shares which means Ugandans can become shareholders in MTN Uganda with an investment of as low as UGX 100,000. This affordable offer of shares by MTN coupled with the incentives is aimed at democratizing the capital market and making it as easy as possible to apply for shares through MTN MoMo.
While making her presentation at the town hall meeting held at Desert Breeze Hotel in Arua today, Enid Edroma, MTN General Manager for Corporate Services said that the goal of the outreach is to ensure that every Ugandan has an opportunity to learn more about the MTN IPO to enable them make an informed investment choice.
“This IPO is for you and me. MTN is here to ensure that Ugandans have an opportunity to participate in this IPO by providing you with all the information you need and answering all the questions you might have. One of MTN’s key values is shared growth, which we hope to achieve by giving every Ugandan a chance to own a stake in MTN Uganda for as low as UGX100,000 which is equivalent to only UGX200 per share. MTN has also made the process of application (for shares) accessible and affordable through MTN MoMo” Edroma said.
Edroma also emphasized that this offer of MTN Shares is open to all Ugandans and incentives have been offered to encourage them to apply, “All Ugandan individuals applying for MTN Shares through MTN MoMo (via USSD or MyMTN app) will receive an incentive of 10 bonus shares for every 100 shares applied for. Individuals applying for shares using other methods like Uganda Securities Exchange (USE) portal https://scd.use.or.ug/ or paper applications will also get an incentive of 5 bonus shares for every 100 shares they apply. In case of over subscription of the MTN IPO, Ugandan individuals will be considered first.”
The MTN IPO is the first ever m-IPO in the region, allowing individual retail investors to apply for the shares through MTN MoMo. MTN customers can apply for shares at their convenience by dialing *165*65# on their phone, first to open their SCD accounts and then apply for the MTN shares. MTN customers with smartphones can also apply through the MyMTN app. Applying for MTN Shares is free.
Persons interested in applying for MTN shares can get further assistance from MTN Service Centres, Stanbic Bank branches, and the licensed brokers including SBG Securities, Crested Capital, and Dyer & Blair. More information about the MTN IPO can be found in the prospectus that is available at www.mtn.co.ug/investors.
The MTN IPO comes at a time MTN is marking 23 years in Uganda. In 2020, MTN Uganda was issued a new 12-year license by the Uganda Communications Commission. The company has also committed to invest about UGX1 trillion to augment its network and customer experience over the coming years. This further confirms MTN’s resolve to continue to be a key player in enabling Uganda’s future growth for many more years to come.